4 December 2015
DETAILS
The continuous optimization of its production operations worldwide
is a key component of the Covestro strategy.
The objective is to operate the most efficient facilities
in its competitive environment. In this context,
Covestro intends to close its MDI production facility
(annual capacity max. 170,000 metric tons)
in Tarragona, Spain, by the end of 2017.
The Covestro Supervisory Board
approved this plan at its meeting on December 4.
The reason for the planned closure,
which could affect about 120 jobs,
is the non-competitive production cost.
Other activities at the site, which comprise
* a local polyurethane systems house,
* hydrochloric acid logistics and infrastructure facilities
are to be retained.
The current infrastructure facilities will continue
to be available to other companies at the chemical park.
The Supervisory Board resolution follows
a detailed site analysis which concluded that in the long term,
the facility in Tarragona can no longer remain competitive
as an MDI production facility in Europe.
A competitive future supply of the site with chlorine,
which is an essential element of the MDI production process,
played a role in the context of these considerations.
To ensure the long-term competitiveness of MDI production
in Europe, the company intensively considered different options
before deciding to invest directly in
its strategic core products, isocyanates,
and to most likely expand production
at another existing European site
where there is already a modern and reliable supply of chlorine.
MDI is an important component for the production of
rigid polyurethane foam. This is used for
the efficient thermal insulation of buildings and
throughout the entire cold chain.
The energy savings achieved help to reduce CO2 emissions.
In addition, applications in modern vehicle construction
provide for enhanced safety.
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